Sounds like section 179 deductions are what the confusion is about, as
compared with other types of expensible business items. Section 179
deductions are, I believe, capped at some $108,000 this year. They can
be used for a variety of things that often used to have to be treated as
capital expenses, and are used to deduct the entire expense in the first
year. The maximum amount that can be deducted is offset by some other
calculational arcana, I forget which, as TaxCut has handled the whole
mess for me every year (and explains well what things can be deducted).
So far so good, over some 12 years, no one at the IRS is sending me
nasty notes.
---
Scott Gomez
-----Original Message-----
From: olympus-owner@xxxxxxxxxx [mailto:olympus-owner@xxxxxxxxxx] On
Behalf Of Chuck Norcutt
Subject: [OM] Re: [OT]Are any list members US Tax Accountants?
I'd like to see that written somewhere. The "about $100" value was
quoted to me by the IRS help desk in Boston by a woman claiming that,
although the IRS didn't really have any official cut-off, when she
worked as an inspector it was only things over $100 that would ever draw
any scrutiny.
But I'd be really happy to have it be $5,000. I wouldn't have to
depreciate anything.
Chuck Norcutt
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